ising property prices have significantly impacted inheritance tax revenues. The historic growth in house prices has pushed more estates above the taxable threshold, increasing the number of families liable for IHT. In high-value areas like London, even modest homes can exceed the threshold, resulting in substantial tax bills.
The government’s decision to freeze the IHT thresholds until 2028 means that this trend is likely to continue. More families will find their estates liable for inheritance tax as property values increase, prompting calls for a review of the system to address these challenges.
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